For OTC derivatives participants, transitioning from a bilateral
world to an all electronic execution and clearing world is challenging at the very
least - until now. To meet the global regulations, SwapsHub provides an integrated
cloud based trading platform built on 3 main principles:
Best Clearing: optimal clearing path for a portfolio based on IM, credit and collateral
Best Execution: SEF aggregation, execution using
RFQ/CLOB, Swap Terminations, allocations
Best Collateral: margin
call aggregation, collateral pool and management tools
Pre-trade Features
- Margin Optimizer: Optimal clearing path IM calculator (x CCPs, y FCMSs=xy clearing paths)
- Transaction Cost Analysis (TCA): CCP Spread, CCP/FCM Fees, Collateral Funding costs etc
- Off SEF clearable swaps IM
- IM for a list of swaps, block allocation etc
- Clearing certainty (single trade, block and allocation level)
- Single trade or flexible portfolio level CCP/FCM porting analysis
- Compliance: Clearing, MAT, Jurisdictions, Fund rules
Trade Execution Features
- SEF market data and aggregation
- Derivatives Order Management System (OMS)
- Full support for RFQ and CLOB
- Swap Termination handling by creating equal and opposite structures
- Trade Booking and management for Cleared, Bilateral and Inter-affiliate trades
- Control and Verification: Trade Workflows, Division of Labor
Post-trade Features
- Real time portfolio aggregation
- Ful life cycle management: resets, corporate actions etc
Collateral Management Features
- Margin Call aggregation: CCP feeds, FCM, Bilateral, Internal
- Integrated call management for bilateral and cleared calls
- ISDA best practices based workflows
- Call verification: independent IM/VM verification
- Static data management: CSA, clearing agreements, haircuts, collateral accounts, standard settlement instructions (SSI)
- Mobility/Visibility: Collateral pledges, movement tracking
- Collateral Optimization using Linear Programming (LP) techniques taking into account of restrictions, concentration limits, rankings etc
SwapsHub has significantly upgraded its OTC Derivatives platform to meet the needs and challenges of a digital ledger solution. The platform
already addresses the buyside to sellside interactions via direct and agency solutions running in a secure cloud infrastructure. To address the common objective of shared immutable and peer-to-peer ledgers, SwapsHub has introduced ISDA CDM based middleware with a feature-set that includes:
Pre-trade Features
- Distributed RFQ Protocol (DFRQ): Only the two parties of a bilateral negotiation know about the price. Since there are no intermediaries involved, confidfential pricing is achieved
- All DFRQ trade negotiations use standard ISDA CDM data and process standards
- All DRFQ workflows are recorded with detailed audit trails
- DFRQ is an ideal protocol for D2C digital networks
- DFRQ can be applied to uncleared and non-sef mandated cleared trades
- Capturing a finalized trade (as the single source of truth) results in a golden record for the entire life cycle between the parties
- The platform also enables confidential communications including chat and voice.All such communications are recorded in the digital ledger with tags attributed to a trade, portfolio or any other characteristic
Trade Features
- Peer-to-Peer Trade Matching workflows and corresponding audit trails
- All trade matching messages use standard ISDA CDM
- End users finally have full access and control over all data and not the vendor
- Initial trade types: IRD, CDS, Digital assets derivatives
Post-trade Features
- Independent bilateral counterparty level life cycle management (ex: resets, corporate actions) using scalable cloud infrastructure
- Digital margin calls and workflows
- Collateral management with digital assets and realtime settlement
SwapsHub addresses the new digital asset class with a unique trade execution and custody platform that caters to both sell side and buy side.
Trade Execution Features
- Digital assets market data and aggregation
- Multi-tenant cloud Order Management System (OMS)
- Exchange order execution through FIX/REST/websockets
- Direct/Agency/Broker execution solutions
Custody Features
- Digital wallets: simple, web, HD multi-sig, MPC
- Digital asset movement
- Agency desk solutions for custody
- Ready-to-go Cloud solution
- Zero Capex: no upfront infrastructure or setup costs
- Flexible pay-as-you-go model
- Fully outsourced technical solution: no additional in-house IT support requirements
In addition to the above, sell side can take advantage of built-in Agency/Broker features:
- Ready-to-go multi-tenant cloud solution: provide full featured solution to your clients with the least cost
- DFRQ: Set your own client digital strategy covering unique products and solutions
- No-touch services: Monitor customer DMA order flows, audit trails etc
- Low-touch services: Place orders using CLOB/RFQ on behalf of customers
Agency Broker Features
All buy-side features plus
- Setup sales trader/support relationships with customers
- Setup and monitor pre-trade agency credit limits for customers
- No-touch services: Monitor customer DMA order flows, audit trails etc
- Low-touch services: Place orders using CLOB/RFQ on behalf of customers
- Hi-touch Services: Advise clients with pre-trade features like IM, best clearing path, off-SEF trades, optimal collateral usage etc.
- Real time FCM credit checks to provide pre-trade clearing certainty
- Extend support for multiple asset classes - IRS, CDX, CDS, FX NDFs etc.
- Manage multiple customer accounts in a single session
- Extend white labelling features to your partners (for ex: regional/foreign banks)